After a number of years of what clearly has been due diligence and certain protective measures being agreed it seems the Swansea City Supporters Trust is moving forwards with a legal pathway as explained in this press release. We are certain there will be a further update shortly.
The news release is as follows.
Over the last year we have provided regular updates regarding our activities in progressing the mandate given to us by our members, authorising us to pursue legal action to address the issues arising from the 2016 sale of our club and the impact that has had on our position within our club, a position that is now no longer secure.
The Trust is pleased to confirm that we are now in receipt of funding offers to ensure that the Trust will be able to pursue legal action but is also protected in the event of an unsuccessful legal action. While any such agreements will come at a cost, in terms of any future award should we be successful, they will ensure the Trust is protected in all eventualities and able to pursue our claim in a responsible manner.
We now expect events to unfold relatively quickly. Our legal team is preparing the Draft Petition to serve to the legal representatives of the parties involved in the 2016 sale and is working with our funding partners to complete all other outstanding activities, such as the necessary complex legal agreements. We expect these activities to be completed in a matter of weeks, at which time proceedings would commence.
Rest assured, despite any comments that could be made to denigrate the Trust by undertaking this action, the Trust is not acting against the club, we are doing so against the parties involved in the 2016 sale. We have been assured by our QC that the club would not be actively involved in proceedings and there is absolutely no reason for it to actively impact the day-to-day activities that matter so much to us all.
While we know our membership voted by a large majority to pursue this course of action, we also know that it is a decision that is taken with great reluctance. It is in recognition of that fact that the Trust has made every effort to see if an alternative path can be reached, that would protect the Trust’s position as custodians of our club, the fans’ voice within the club, and their eyes and ears within the boardroom.
To date, despite discussions, these efforts have not resulted in a positive outcome. In the case of the former shareholders, there has been nothing but silence.
As we know, the status quo is not sustainable. As a result of the recent loans into the club, the Trust’s shareholding could easily be diluted below it’s current 21% and, in the event of any future loans, eventually to nothing at all.
It is with great disappointment that we have got to this point, however the alternative is that we do nothing, quite possibly see our stake in our club disappear, and our voice within the club diminish. That is the most unacceptable outcome of all.
Swansea City Supporters' Trust
13th June 2021